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Toys 'R' Us Canada Enters Creditor Protection, Keeps 22 Stores Open for Now

Court protection pauses creditor actions during a review of options led by Alvarez & Marsal.

Overview

  • The retailer sought CCAA protection to evaluate restructuring, a potential sale, or liquidation under the oversight of Alvarez & Marsal.
  • Twenty-two locations continue to operate, with the company warning of possible additional closures after 53 shutdowns over the past two years.
  • Court filings show at least $120 million owed to merchandise vendors, with reporting indicating roughly $160 million in total liabilities including rent and service arrears.
  • Previously issued gift cards are being honored for 14 days from the filing, and about $36 million in outstanding gift card obligations are noted in records.
  • E-commerce is paused with purchases directed to stores, and the company faces lawsuits from suppliers and landlords including a lease termination by RioCan over unpaid rent.